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BANKING

From Times Staff and Wire Reports

Price Put on Bad Loans to Insiders: Bad loans to board members, executives and other insiders at the Bank of New England could cost the government as much as $185 million, a congressional investigation agency reported. The General Accounting Office said that more than half the loans made by BNE to insiders will probably turn sour and that some of these loans were made on more favorable terms than were available to the general public. The 50-page report, released by the Senate Banking Committee, provided a detailed view into what became the third-largest bank failure in U.S. history.


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